Answered: A. Using the average price for all…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter4: The Aggregate Economy

Section: Chapter Questions

Problem 6E

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Question

A. Using the average price for all three goods, real GDP in 2012 is $___. (Enter your response as an integer.) B. Using the average prices for all three goods, real GDP in 2013 is $___. (Enter your response as an integer.) C. The percentage change in real GDP from 2012 to 2013 is __ percent. (Round your response to two decimal places.) D. Using the average prices, the GDP deflator for 2012 is ____ . (Round your response to two decimal places.) E. Using the average prices, the GDP deflator for 2013 is ____percent. (Round your response of two decimal places.) F. Using the GDP deflators recorded above the rate of inflation from 2012 to 2013 is ___ percent. (Round your response to two decimal places.)

An economy produces three goods: cars, computers, and oranges. Quantities and prices per unit for years 2012 and 2013 are as follows:
2012
2013
Quantity
Price
Quantity
Price
Cars
12
$3,000
14
$4,000
Computers
4
$1,100
7
$400
Oranges
1,200
$1
1,300
$1
2012
2013
Nominal GDP
$41,600
$60,100
Average Prices 2012-2013
$3,500.00
$ 750.00
Cars
Computers
Oranges
$1.00

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